Dan MacDonald to STRS board: STRS’s fiduciary responsibilities are for actives and retirees. I am looking forward to restorations for actives and COLAs for retirees.

Dan MacDonald's speech to STRS board

June 25, 2027

THROWN UNDER THE BUS

Mr. Chair and members of the Board, good afternoon. I am Dan MacDonald, an STRS retiree with 38 plus years of service and Executive Director of Local 279R, Northeast Ohio AFT retirees, regularly attending Board meetings since 2014.

Back in March, during the Executive Director’s report, a proposed FY 2027 Budget increase of 8.5% was warned. In April, a month later, during Public Participation I spoke against the 8.5% but later in that Board meeting a 9.8% increase FY 2027 Budget was presented. Then May comes, sorry that I was not here but home recovering from another hospital bout; a 6.2% amended budget was presented and approved.  I would love to take credit for the change, but some of the Ohio Retirement Study Council board members have a death grip on our organization, STRS, with roughly a $110 BILLION-dollar general fund. Some of our Board members reacted very positively to the deflation even pointing out that next year’s budget should be even less and another, that we might have been too lenient on the Executive Director's 2026 budget. 

My reaction was guttural and immediate.  If in his heart and if we believe he has integrity and our Executive Director thinks STRS would be better served with more AI or personnel, he should be able to present a budget with say, a 20% increase, and OUR Board should be doing the whittling back. Would I react in Public Participation? Yes, for sure, but we need our visionaries.  The budget is addressing millions of dollars while the investment department, a part of the budget, is earning STRS - actives, retirees - billions of dollars. On the state and federal level, legislators are angling for control. There is more than one legislator in Ohio that desires to become an Elon Musk, a trillionaire, and control of STRS is a steppingstone. Seriously, does this Board have trust in our Executive Director? If yes, you did not show it at last month’s meeting. He was “Thrown under the bus!”

STRS’s fiduciary responsibilities are for actives and retirees. I am looking forward to restorations for actives and COLAs for retirees. 

Dan MacDonald's report on the June 2026 STRS board meeting

From Dan MacDonald

June 27, 2026

HEALTH PREMIUMS RISE IN 2027

The June 25, 2026, STRS meeting opened with the approval of May’s minutes and right into the Member Benefits Department 2027 Health Care Plan Premium Rate discussion. The projected hour discussion turned 90 minutes. After much discussion by Board members and including the Board’s and A.G.’s lawyers, there were three voted motions. The first two voted down. The third was approved in a 5-4 Board vote with an abstention. The passed motion- a 10% increase of the 2026 cost plus a subsidy glidepath.  What does that mean? Aetna Medicare Plan medical/prescription monthly premiums of $214 [with 30 Years Of Service-$45]; Aetna Medical Basic Plan medical/prescription monthly premiums of $418 [with 30 YOS - $249] and Aetna non-Medicare Basic Plan medical/prescription monthly premiums of $1,495 [with 30 YOS - $387] and further approved a subsidy glidepath of reducing the non-Medicare multiple from 2.47% to 2.1% and the Medicare multiple from 2.17% to 1.8% starting in 2028 by reducing both multiples 0.03% per year until the end multiple is reached in 2040.

[Medical costs continue to rise faster than inflation and the STRS health plans experience 2026 reviews were high. STRS staff and some Board members desired Aetna Medicare Plan medical/prescription monthly premiums of $246; Aetna Medical Basic Plan medical/prescription monthly premiums of $458; and Aetna non-Medicare Basic Plan medical/prescription monthly premiums of $1,635. Other Board members, who prevailed, approach is a one year wait and see what happens. Remember that the STRS medical fund is closed. Moneys going into the fund are only monthly paid premiums and investment earnings. An increase of $407, monthly, in the non-Medicare plan was projected for the 2028 premium with the above choice chosen. Think $1,902 full monthly premium in 2028 if projections are accurate.  Retirees under 65, because they are not on Medicare, are extremely hard hit. Decisions are made. Your Board is working hard and attempting to weigh all input to do its best for you. If you need to vent, call me, Dan MacDonald, 440-564-1200.]

The Governance Committee then approved changes to seven Board Policies and added a new “Communication Policy.”  The Legislative Committee followed with a legislative calendar update, priorities, and timing. Basically, the politicians are at home campaigning and not due back until November 10. COLA was briefly discussed, particularly how to address different cohorts to keep purchasing power at 85% of initial retirement power.

The Investment Committee reported a May return of a positive 2.2%. The preliminary net total return for the fiscal year is a positive 14% [Remember the assumption is 7%; this is good.] Total assets $110.4 billion, higher by $9.8 billion in FY 2026. [The 2026 FY ends July 31, 2026.] Outside consultants Maketa and Callen each gave quarterly performance reviews through March 31, 2026. Both consultants praised the investment department and ranked the department high against its peers. The Fiscal 2027 Investment Plan was then presented by department heads for risk management, fixed income, domestic equity, international equity, liquid alternatives, real estate [doing better], private equity, and private credit. Each head did a 2026 review followed by a 2027 outlook and strategy. In summary, the staff forecasts near-trend but uneven growth, with a wide, negatively skewed distribution of outcomes with risks increasingly skewed downside, driven by persistent inflation, geopolitical conflict, and constrained monetary policy.Seven retirees spoke during Public Participation. Most spoke on COLA. [I was disappointed that no active spoke to their concerns.] After lunch, the Executive Director gave his report which addressed the Funston Fiduciary Performance Audit; AI and a strategic investment platform roadmap; an associate engagement survey [think teamwork makes the dream work]; and general updates including a Columbus Education Association town hall meeting. Routine Matters, Old/New Business concluded the day. The next Board meeting is scheduled for August 17 – 18, 2026, a Monday, Tuesday.